Hello and welcome to the working week.
The uncertainty surrounding the Russia-Ukraine crisis and diplomatic efforts to avert a conflict are likely to continue to be at the top of the agenda this week. After the conclusion of the Munich Security Conference, the situation is expected to be discussed at meetings of EU ministers during the week.
British representatives are starting the working week with a return to the House of Commons and House of Lords after recess. UK prime minister Boris Johnson will announce the government’s “living with Covid” strategy, which could include the end of self-isolation. NHS leaders have warned against premature relaxation. First minister Nicola Sturgeon is to publish Scotland’s longer-term Covid-19 strategy on Tuesday. She previously indicated she was reluctant to match plans that would in effect scrap remaining restrictions this month.
Two nations that have followed strict border policies over the past two years are also partially reopening this week. Australia is preparing for a tourism wave when it welcomes double-vaccinated overseas visitors on Monday and its neighbour New Zealand will from Sunday allow fully vaccinated citizens in Australia to return without having to quarantine at state-managed hotels.
On to financial matters. US markets will be closed on Monday while the country celebrates Presidents Day. On Wednesday, the recently under-fire Bank of England governor Andrew Bailey will appear before the Treasury Committee to discuss the UK central bank’s quarterly Monetary Policy Report. Inflation is set to be a key topic.
Before moving on to economic data and corporate news, please check out Climate Capital Live, a platform for politicians, business leaders and financiers to evaluate the risks and opportunities they face in light of the climate crisis. Join in person and online on March 8-10 by registering here.
Economic data
Inflation has hit recent record highs in economies around the world, with central banks expected to begin tightening monetary policy. Debate continues on whether it is transitory but the increase in the cost of living is already having a significant impact for many.
This week, look out for rate releases in France, Italy and the EU. During the pandemic, house prices have soared in many regions and in the coming days house price index data will be released in the UK, US and China. The Financial Times is tracking price rises and you can search by country here.
Companies
Earnings season continues. A big theme this week is results from the travel and leisure industry. Businesses across the sector have been hit by restrictions since the start of the pandemic, with the Omicron variant also denting bookings. Heathrow, the biggest UK airport, is due to report. So is the owner of British Airways, International Airlines Group, as well as Qantas Airways, Norwegian Cruise Line and InterContinental Hotels.
Bank earnings will be released by HSBC Holdings, Barclays, Lloyds Banking and Metro Bank. Other notable results to watch for this week include Centrica, owner of British Gas, which will provide an insight into the impact of the energy crisis. Also look out for Beyond Meat, which became one of the most shorted companies on the US stock market earlier this year as scepticism grows over the plant-based meat boom. On the flip side, observers will be following UK-listed Hays to see if the recruiter continues to benefit from the talent war. Cryptocurrency exchange platform Coinbase and Jack Ma’s ecommerce platform Alibaba will also publish earnings.
Key economic and company reports
Here is a more complete list of what to expect in terms of company reports and economic data this week.
Monday
Eurozone, France, Germany, UK: IHS Markit flash composite purchasing managers’ index (PMI) data releases
Japan, flash composite PMI
Germany, producer price index (PPI) figures
UK, China: house price indices
China, People’s Bank of China interest rate decision
Tuesday
US, IHS Markit flash composite PMI data, house price index and consumer confidence data
UK, public finances and CBI industrial trends survey
Italy, inflation rate
Germany, Ifo Institute monthly business confidence index
Results: HSBC Holdings FY, InterContinental Hotels Group preliminary FY
Wednesday
Germany, GfK consumer confidence survey
EU, inflation rate
Results: Barclays FY, Petrobras SA FY, Danone SA FY, Heathrow Airport Holdings FY, Metro Bank FY, Rio Tinto FY, Aston Martin Lagonda FY, eBay Q4
Thursday
US, revised Q4 gross domestic product (GDP) and initial jobless claims
UK, ONS early estimates of Q4 regional gross value added
Results: Lloyds Banking Group FY, Dell Technologies Q4, Rolls-Royce FY, Beyond Meat FY, Hays H1, BAE Systems FY, Serco Group FY, AB InBev Q4, Deutsche Telekom FY, Coinbase FY, WPP preliminary FY, Centrica preliminary FY, Alibaba Group Q4, Moderna Q4, Bain Capital Q4, Norwegian Cruise Line Holdings FY, Qantas Airways HY
Friday
UK, GfK consumer confidence survey
Germany, Q4 GDP data and import prices
France, Q4 GDP data, PPI figures and inflation rate
Spain, PPI data
Italy, business and consumer confidence data
EU, economic sentiment indicator and business climate indicator
Results: Pearson FY, International Airlines Group FY
Saturday
US, Warren Buffett is set to publish his annual letter to Berkshire Hathaway shareholders and report results
World events
Finally, here is a rundown of other events and milestones this week.
Monday
UK, MPs and peers return to Westminster from recess, and Boris Johnson announces the government’s “living with Covid” strategy
US, Presidents Day, financial markets closed
EU, UK, Joint committee meeting in Brussels
EU, foreign ministers meeting
Australia, reopens its international borders to fully vaccinated visa-holders
Tuesday
Nicola Sturgeon announces Scotland’s long-term pandemic strategy
ILO Global Forum for a Human-centred recovery begins, with speakers including IMF managing director Kristalina Georgieva
Last day of London Fashion Week and the start of Milan Fashion Week
Wednesday
UK, Andrew Bailey to appear at a Treasury Committee session on the BoE’s quarterly Monetary Policy Report
Portugal, prime minister António Costa takes office after winning snap general election
Russia, Defender of the Fatherland Day marked
Thursday
Hong Kong, national security case of media tycoon Jimmy Lai and other former Apple Daily associates expected to resume in court
US, the Conservative Political Action Conference begins and runs to Sunday. Former president Donald Trump is expected to be among the speakers
Friday
Eurozone, eurogroup meeting of finance ministers ahead of the Economic and Financial Affairs Council meeting
Brazil, opening ceremony of the 2022 Rio Carnival
Sunday
Belarus, referendum on a new constitution
New Zealand, begins its border reopening plan with fully vaccinated citizens, residents and other eligible travellers in Australia able to return without mandatory state-managed hotel quarantine
US, Screen Actors Guild awards for film and television performances
UK, Carabao Cup final, Chelsea vs Liverpool
Source: Economy - ft.com
